Matson

July 20, 2007

Subject: Matson Increases Fuel Surcharge by 1.5 Percentage Points

Dear Matson Customer:

As a result of recent increases in bunker fuel prices and other energy-related costs, Matson Navigation Company announced today that it is raising its fuel surcharge in its Hawaii and Guam/CNMI services by 1.5 percentage points, from 22.50 to 24 percent, effective in 30 days on August 19, 2007.

"The cost of fuel has been on the rise again, increasing to near record high levels," said Dave Hoppes, senior vice president, ocean services. "Fuel consumption is an unavoidable and significant component of our operating costs, with every dollar increase per barrel adding over two million dollars in annual expenses. We will continue to monitor fuel costs and adjust the fuel surcharge accordingly."

If you have any questions, please contact your local sales representative or our Customer Support Center.

Thank you for shipping with Matson.